#Official Mining Thread

[rhino]

From ABC News on line:

Mineral sands mine officially reopened

Chinese investors say a mine in the Murray Mallee of South Australia will help meet China's demand for zircon and other mineral sands.

The Mindarie mine, north-east of Karoonda, has been officially re-opened by SA Government representatives and a Chinese delegation and has a workforce of 140, about 50 living on site.

It is hoped the project will produce 120,000 tonnes of zircon and other mineral sands annually.

The Chamber of Mines and Energy said it was clear that smaller ventures were key to mining industry success in South Australia.

Chamber chief executive Jason Kuchel said international investment could see more small ventures reach the production stage.

"Resources have always relied on the investment from those countries that most want our resources, it's currently China," he said.

"But we will need to continue to receive their investment into these projects and this actually paves the way, I think, for more of that investment for SA."

[Wayno]

This topic was discussed earlier, latest news being BP purchasing a rig for their Bight drilling program. Still a ways off though.

Oil giant BP contracts $US755m rig for search for petroleum in the Great Australian Bight south of Ceduna

THE search for petroleum in the Great Australian Bight south of Ceduna has taken a significant step forward with BP Australia contracting a newly built exploration rig for the work.

The rig - costing $US755 million (A$781 million) to build and commission - will be made by Hyundai Heavy Industries for Texas-based company Diamond Offshore Drilling.

BP has contracted Diamond Offshore, a global specialist in deep water operations,for its exploratory drilling.

"BP conducted comprehensive studies to select the rig design for its Great Australian Bight drilling operations," BP's vice-president exploration and production, Australia, Phil Home, said.

"BP is pleased to have secured a new-build rig for use in the Great Australian Bight."

"The rig is designed for use in deep water and harsh marine environments."

The rig is due to be delivered to Diamond Offshore by November 2015 - with BP aiming to commence drilling in the summer of 2015-16 if it clears all regulatory hurdles.

Drilling does not come cheap. BP will pay at least $US585,000 a day for the rig.

The rig is a Moss CS60E design harsh environment semi-submersible.

"We are pleased to have been selected by BP for this important work," Diamond Offshore's chief executive officer Larry Dickerson said.

"Our company, and its predecessors, have been continuously active in Australia since 1982, drilling over 600 wells; far more than any other drilling contractor.

"We believe that this market-leading experience should enable Diamond Offshore to play a key role in our customer's exploration efforts and we look forward to this opportunity."

[Wayno]

A few snippets of good news. Also not mentioned below is the intent for a FI-FO arrangement for one SA mine so folk can commute from Adelaide each day. FIFO normally means fly in/fly out, but in this case it's likely to be float in/float out. That's all i can say right now

From The Australian

South Australian mining and energy projects hit key milestones in good news for the state

SOUTH Australia's resources sector got a boost today with three major projects hitting key milestones.

Perhaps most significantly, Rex Minerals announced it has signed a non-binding agreement to fund 70 per cent of the cost to build its Hillside copper and gold mine near Ardrossan on the Yorke Peninsula.

The company has struck an agreement with Chinese company NFC to fund an expected $550 million of the cost of building the mine, and also manage its construction.

The construction of the mine would be subcontracted out to NFC's Australian partner Arccon.

Rex is now working on finding the balance of the funding, and hopes to start building the mine in the first six months of next year.

IMX Resources also announced good news, releasing a study showing its Mt Woods iron ore mine near Coober Pedy would be economically viable.

The company also has a mine 15km from the proposed new mine, and said the savings on infrastructure from having the projects near to each other was key.

The company's study shows it would cost $295 million to build the mine, which would pay itself back in four years.

The study was based on a mine exporting 2.5 million tonnes of iron ore per year through Port Adelaide, for more than 25 years.

The size of the iron ore deposit would also support a larger scale project, the company's managing director Neil Meadows said.

"We believe the Mt Woods project is a unique opportunity in the Australian magnetite industry as the infrastructure required to develop the project is already in place and being used by IMX's Cairn Hill mine," he said.

"As a consequence, unlike most pre-development and current Australian magnetite projects, Mt Woods does not require large-scale capital investment and is not reliant on third parties for new infrastructure, in order to develop a potentially economically viable project."

In the energy sector Chinese energy giant China National Offshore Oil Corporation has committed "significant funding" to accelerate work on a multi-billion dollar joint venture project with Altona Energy in the state's north first announced in 2009.

The financial commitment and accelerated work program has helped secure a State Government extension on its exploration licences until June 2015. The licences were due to expire in two days.

Drilling on site is expected to start at the end of this year a delay from the previously stated timeline of early 2012.

Altona managing director Chris Schrape did not reveal the funding commitment but said the process of securing a drilling contractor would start later this month and more details of the work program revealed subsequently.

The state government is already privy to all the details but the information has not been made public yet.

[mattblack]

More info on the Rex deal from InDaily

Rex Minerals has moved a step closer to production at its Yorke Peninsula copper prospect, signing a construction and financing memorandum of understanding with a Chinese mining group.

The announcement today follows a trading halt in Rex Minerals shares yesterday.

Shares in the local minerals explorer jumped 36 per cent to 34 cents in early trade.

The deal comes after reports that Rex executives were in talks with multiple international consortiums to provide a fixed price, turn-key contract to build the plant and provide financing support to advance the Hillside project near Ardrossan. Rex’s share price has been in free-fall in recent months, down from a high of $3.00 to a low now of 24 cents, closing yesterday at 25 cents.

“Rex Minerals Ltd is pleased to announce that it has signed a non-binding Memorandum of Understanding with China Nonferrous Metal Industry’s Foreign Engineering and Construction Co. Ltd (NFC) and its Australian based subcontractor Arccon (WA) Pty Ltd as part of the engineering, procurement and construction and overall financing plan for the development of the Hillside Project,” the company told the stock exchange this morning.

Managing director Mark Parry said the prospect of a long term deal with the Chinese group was a move in the right direction.

“We are extremely pleased to start what we consider to be a long term relationship with NFC from China,” he said. “NFC is a major highly experienced construction company with a history of successfully building processing plants around the globe.

“We believe NFC’s experience and the link with an Australian construction company in Arccon, will be an important formula for success as we advance the Hillside Project towards production.”

Parry said the next step would be to secure a funding model.

“With greater certainty about the timing and quantum of debt funding, Rex is now well positioned to continue commercial negotiations with a range of parties to secure the balance of the funding.

“To date these include potential iron ore off-take partners, parties seeking to provide funding to get long term access to copper supply, and other investors actively seeking involvement in Hillside including potential JV partners at project level.

“The purpose of this MOU is to provide a framework for co-operation for establishing the cost and programme for delivery of the Hillside Project. In addition the MOU establishes the procedure to develop and submit a binding quote to Rex for the finalisation and execution of EPC and Financing Terms Sheets.”

The announcement outlines a timetable of progression towards a final deal with execution of the EPC contract expected by September/October 2013 and mobilisation of engineering and procurement teams by November 2013.

The Hillside project is 12km south of Ardrossan on the Yorke Peninsula and has been widely touted as one of many potential large-scale copper-gold projects within Rex’s 100 per cent owned exploration licences on the Yorke Peninsula.

[monotonehell]

A few snippets of good news. Also not mentioned below is the intent for a FI-FO arrangement for one SA mine so folk can commute from Adelaide each day. FIFO normally means fly in/fly out, but in this case it's likely to be float in/float out. That's all i can say right now

So those rumours of a airship terminal are true?

[Maximus]

An encouraging article...

BHP "determined'' to push ahead with Olympic Dam but only after new mining techniques are thought through
by: CHRISTOPHER RUSSELL
From: The Advertiser August 21, 2013 2:26PM

BHP Billiton is "absolutely determined" to find a way to go ahead with expanding Olympic Dam, the company's top executive in South Australia says.

There were two key objectives for BHP in South Australia, asset president of Olympic Dam Darryl Cuzzubbo told a mining conference in Port Pirie.

In his first public speech since taking command in SA, Mr Cuzzubbo said the priority was to make sure the existing Olympic Dam copper/uranium/gold operation was running at world-leading efficiency standards.

If not, he would have no credibility when asking the BHP Billiton board to fund the expansion.

Secondly, the key was to make the economics of the expansion work.

"We are absolutely determined to find the best way to expand Olympic Dam that competes against other investment opportunities," he said.

continues...

[rhino]

From ABC online:

Braemar iron ore mining and export plan given SA major project status

Tue 24 Sep 2013

Major development status has been given to a proposed mining project, transport corridor and floating port in northern South Australia.

The $5 billion Braemar bulk export project includes planned a 385-kilometre transport route between upper Spencer Gulf and outback iron ore resources in the state's north-east.

The deposits are from an area just outside Broken Hill in New South Wales and extending about 250 kilometres to the west.

Deputy Premier and Planning Minister John Rau said a floating processing facility was planned off Yorke Peninsula, north of Wallaroo.

He said the corridor would be through pastoral land and include slurry pipelines to move the ore.

"It will be up to the people proposing the project to make arrangements for access to relevant land, but this is the approval process so we're now going to go through an environmental impact process and various other processes to make sure this is an appropriate project to get a final sign-off," he said.

"Major development status allows for the most sophisticated and thorough set of planning approvals available within our planning regime.

"There is a strong level of scrutiny applied to the project's assessment, with significant consultation requirements."

Mineral Resources Minister Tom Koutsantonis said the project would allow for an eight-fold increase in the volume of iron ore being exported.

"When fully developed the project has the potential to increase the state's exports of iron ore concentrate from 12 million to more than 100 million tonnes per year," he said.

Gordon Toll from Braemar Infrastructure said about $3 billion would need to be raised before the project could go ahead.

"We're a private company, we'll probably stay that way for some time because one of our major sources of finances will be private equity, private equity groups, there is a lot of money out there for private equity, investment groups looking for something just like this to invest in," he said.

[zippySA]

Port Bonython EIS out for comment - one step closer to a deep water port to facilitate some reality into the mining potential of SA. Hope it gets built and we see some projects move into construction around it.

http://www.spencergulfportlink.com.au/

[Maximus]

I wasn't sure whether to post this article here or in The Pub...

CSIRO scientists have found gold growing on gum trees near Wudinna on the Eyre Peninsula
by: Katrina Stokes
From: The Advertiser

YOU won?t believe it when you read this - scientists have found gold growing on gum trees near Wudinna on the Eyre Peninsula.

In an Australian-first breakthrough, a team of CSIRO scientists discovered eucalyptus trees near the country town draw up tiny gold “nuggets” from the earth via their root system and then deposit the valuable metal on their leaves, bark and branches.

While scientists have found gold on trees before, it was never actually known how it got there.

full article...

[Hooligan]

So money does grow on trees?

[Will]

Some good news from The Advertiser:

Giant $4.5b Central Eyre Iron Project gets federal major project status

POLITICAL REPORTER TORY SHEPHERD •
The Advertiser •
April 04, 2014 9:30PM

THE Federal Government will fast-track a $4.5 billion mining project touted as a saviour for the Eyre Peninsula and a huge boost for the state’s economy.

The Central Eyre Iron Project has been granted major project facilitation status – clearing the way for it to proceed and eventually employ about 2000 people at its peak . and

It is also expected to generate major economic benefits for Wudinna and the surrounding area and could bring in up to $3 billion a year as it exports iron ore to Asia.

Iron Road managing director Andrew Stocks will follow Prime Minister Tony Abbott to Asia next week to woo investors.

Mr Stocks and his colleagues will head to China to speak to local investors and others from Korea and Japan with the imprimatur of the PM, who leaves for Asia today.

Iron Road has spent millions of dollars over several years to build momentum for what will be the nation’s largest magnetite iron ore project.

It is hoped the project will fill some of the gap caused by BHP Billiton’s shelving of the Olympic Dam expansion and deliver a much-needed boost to the economy by 2017, when Holden stops making cars in South Australia.

Mr Stocks said the company had spent $100 million on a two-year feasibility study and now wanted to “move with some haste” through approval processes so it could secure finance.

Then it would be able to build a railway line, a deep-water port and upgrade power and water supplies in the region.

“We want to get it happening as fast as we can. Time is of the essence,” Mr Stocks said, adding that now the feasibility study was done, it was the approvals process that could hold up the project.

The project already had major project status through the State Government and the addition of federal major project facilitation status would steer the company swiftly through processes at both levels and help it find Asian investors.

“It is very important for government to lead business, particularly in Asia,” Mr Stocks said. “We work in parallel here, but it doesn’t work that way in Asia.”

SA Liberal frontbencher Christopher Pyne lobbied his colleagues to ensure the mine became a major project. He said the move would remove hurdles and red tape and that Deputy Prime Minister and Infrastructure Minister Warren Truss would help link the company to investors and foreign governments.

“Giving it major project facilitation status means the Federal Government will put its shoulder to the wheel for the company and make sure it’s not bogged down in red tape,” Mr Pyne said.

He said it was hard to raise so much capital without help and the status would remove “potential minor irritants” that could slow down the project.

He also said SA was the only state that was resistant to the idea of “one-stop shops” for environmental approvals to streamline similar projects.

The 6km-long open-pit magnetite iron ore mine would be able to produce more than 20 million tonnes of ore a year. It is expected to operate for at least 25 to 30 years.

Mr Stocks said while most people were on side, he had no doubt people would raise concerns, particularly about environmental impacts.

“People will be watching to make sure we’re guided properly. I have no problem talking to people who are concerned about aspects of the project,” he said.

About 2000 people will be employed at the site during construction, after which a workforce of 600 to 700 people will be needed.

Wudinna mayor Tim Scholz stepped down from his position last year to work with Iron Road, saying the company could save the Eyre Peninsula community because it would lead to new infrastructure and jobs. He said at the time it was important to maximise the benefits for the area and make sure there were jobs for locals.

“The company wants the workforce to be as residential as possible and this will present an opportunity for a residential workforce and a drive-in, drive-out workforce from across Eyre Peninsula,’’ he said.

In 2012, Iron Road announced plans for a deep-water port at Cape Hardy, north of Tumby Bay, on the Eyre Peninsula as part of the required infrastructure.

It will also include a 150km infrastructure corridor for a railway line, power and water lines to connect the mine to the port. It is understood some properties may need to be bought to allow the corridor to proceed, but the company does not have compulsory acquisition rights.

The project will be the only one with federal major project facilitation status in SA. Other projects with status include major mining projects, rail routes and natural gas plants, an offshore port and coal export terminals.

[skyliner]

Saw this on the news in BRISBANE! Pretty excited overall in the report. Hope it goes ahead. 6km long open cut of iron ore is pretty staggering to conceive - will be pushed along by the continued Chinese desire for the ore.

However. I watched a doco about the Chinese economy on 7th and spoke of impending bubble looming as export income too low as against production levels.

ADELAIDE - TOWARDS A GREATER CITY SKYLINE

[Will]

From the Advertiser:

New MD as IMX makes SA home

CAMERON ENGLAND •
The Advertiser •
April 08, 2014 9:50AM

IMX Resources has appointed Gary Sutherland as managing director and will move its head office to Adelaide.

The iron ore miner has employed Mr Sutherland, who was previously managing director of Flinders Mines and has held executive positions with BHP Billiton and Pasminco.

Derek Fisher has moved into the role of non-executive chairman, while acting managing director John Nitschke will remain on the board as a non-executive director.

Dr Fisher said the move to Adelaide recognised the company’s increasing South Australian focus.

“The company’s Australian activities have become increasingly South Australian centric and it is only appropriate that we now base our head office in Adelaide,’’ he said.

“We are delighted to have secured someone of Gary’s experience and ability to lead the company in this new phase of its evolution.

“His recent experience in the iron ore sector and his proven strategic, corporate and technical abilities will stand us in excellent stead as we move forward.

“Gary comes to IMX at an exciting time, following the recent approval of the Phase 2 extension of the Cairn Hill operation, leveraging off our strong operating track record and established infrastructure network.’’

IMX last week decided to extend operations at its Cairn Hill mine to mid-2015 and late last week said a new hematite iron ore find at its Mt Woods project presented an opportunity for direct shipping ore developments.

[JamesXander]

Saw this on the news in BRISBANE! Pretty excited overall in the report. Hope it goes ahead. 6km long open cut of iron ore is pretty staggering to conceive - will be pushed along by the continued Chinese desire for the ore.

However. I watched a doco about the Chinese economy on 7th and spoke of impending bubble looming as export income too low as against production levels.

ADELAIDE - TOWARDS A GREATER CITY SKYLINE

The federal government wants/needs this Iron Ore project to go ahead. If this were within WA's borders it wouldn't have received Fed Gov Major Project status.


I still believe this won't go ahead. Its just too big & complex a project in a part of mining that is very bearish. The Iron Ore glut is going to hit soon (hello FMG, BHP & RIO all expanding IO output, throw in Roy Hill and its not looking good).

Not to mention this is a M IO project, the only other one in Australia on a large scale is Karrara, which is losing money hand over fist at the moment.

[JamesXander]

Also of interest is after all the articles above about Rex signing with the Chinese...nothing eventuated. Now we have the South Koreans apparently in the picture. You would think these positive developments would have a positive impact on Rex's share price right? No, the company is currently trading about $30-40m above its cash holdings. This is a penny dreadful at the moment.


I've spent a lot of time researching this company and I still find it concerning they keep pushing out their time frames. The BFS was due quite some time ago, the government approvals were meant to come out right after the election. Construction was meant to start now.


Something isn't right about this project. A director hasn't bought a share on market for many years now, despite it being at near record lows yet so close to a final decision point.


As I've said before I want this project to go ahead, I want all these major SA projects to go ahead. I just think we keep getting our hopes up because our government keeps throwing Major Project status at anything that has a pretty drawing. The reality is we do not currently have even 1 major mine that is in reality even close to being developed (Happy to be proven wrong).

Our brightest hope is that they develop the technology to transport that ore from OD safely and just on with it. + Hopefully they hit a new saudi Arabia in the Bight.